Chunwang Environmental Protection 2016 Annual Dispatch Distribution Announcement

- Dec 26, 2018-

1. Equity distribution plan

In view of the steady growth of the company's operating conditions and development prospects, in order to return to the majority of shareholders, the following equity distribution plan was drawn up. According to the audit report of Dahua Audit [2017] 002332 issued by Dahua Certified Public Accountants (special general partnership), as of December 31, 2016, the undistributed profit of the parent company was 6,810,005.56 yuan, and the capital reserve was 8,748,503.48 yuan. Based on the existing share capital of 246.623 million shares, the company intends to distribute a cash of 0.80 yuan (including tax) to every 10 shares of all shareholders with undistributed profits, with a total distribution profit of 1,969,788.24 yuan. The capital reserve will be transferred to all shareholders for 3 shares for every 10 shares, a total of 7,386,705 shares will be converted. After the equity distribution is completed, the share capital will increase to 32,009,058 shares. The actual distribution result will be subject to China settlement accounting. The board of directors of the company will complete the distribution of rights within 2 months after the shareholders' meeting is reviewed and approved.

2. The consideration of voting

On April 20, 2017, the company held the 23rd meeting of the first board of directors to deliberate and approve the “Proposal on the <2016 Annual Dispute Distribution Plan>”. The voting result: 5 votes in favor, 0 votes against, 0 abstentions , does not involve avoidance, no need to avoid. According to the company's articles of association and relevant regulations, this plan still needs to be submitted to the shareholders meeting for consideration.

3. Other

Before the disclosure of the profit distribution plan, the company strictly controlled the scope of insider information insiders, and the internal information insiders fulfilled the confidentiality and the prohibition of insider trading. The profit distribution plan still needs to be reviewed and approved by the company's shareholders meeting. Investors are advised to pay attention to investment risks.

4. The file directory for reference

1. Resolution of the 23rd Meeting of the First Board of Directors of Shenzhen Chunwang Environmental Protection Technology Co., Ltd.